Asian Stocks Climb on U.S. Data, GM Bankruptcy; Automakers Gain

June 2 (Bloomberg) -- Asian stocks rose after U.S. economic data added to signs the global recession is abating and General Motors Corp.’s bankruptcy raised optimism Asia’s automakers will gain market share.

Toyota Motor Corp., which overtook GM last year as the world’s biggest carmaker, climbed 2.4 percent in Tokyo, while Kia Motors Corp. added 2.5 percent in Seoul. BHP Billiton Ltd., the world’s largest mining company, gained 2.9 percent as oil and metal prices increased yesterday. STX Pan Ocean Co. Ltd., South Korea’s biggest bulk carrier, jumped 5.5 percent as shipping rates rallied.

“The data continues to improve everywhere because of the extraordinary policy stimulus,” said Stephen Halmarick, Sydney- based head of investment markets research at Colonial First State, which holds about $104 billion. “I’m just worried that the demand to meet all that production may not materialize, and that you get a significant relapse in the economic data over the second half of 2009.”

The MSCI Asia Pacific Index advanced 1.1 percent to 105.13 at 1:34 p.m. in Tokyo. The gauge has risen 49 percent since falling to a more than five-year low on March 9 on speculation the worst of the financial crisis is over.

Japan’s Nikkei 225 Stock Average added 1 percent to 9,775.58, while Australia’s S&P/ASX 200 Index gained 1.7 percent. Hong Kong’s Hang Seng Index dropped 0.3 percent, led by Industrial & Commercial Bank of China Ltd. after Goldman Sachs Group Inc. sold a stake in the Chinese lender at a discount.

GM Bankruptcy

Also in Hong Kong, Parkson Retail Group Ltd., a department- store operator, fell 5.7 percent as its controlling shareholder sought to divest stock. Neptune Orient Lines Ltd., Southeast Asia’s No.1 container carrier, surged 14 percent on plans to repay debt. EVA Airways Corp. surged 6.9 percent in Taipei after winning permission to raise ticket surcharges.
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General Motors files for bankruptcy protection

NEW YORK (AP) -- General Motors filed for bankruptcy protection Monday as part of the Obama administration's plan to shrink the automaker to a sustainable size and give a majority ownership stake to the federal government.

GM's bankruptcy filing is the fourth-largest in U.S. history and the largest for an industrial company. The company said it has $172.81 billion in debt and $82.29 billion in assets.

"The General Motors board of directors authorized the filing of a Chapter 11 case with regret that this path proved necessary despite the best efforts of so many," GM Chairman Kent Kresa said in a written statement. "Today marks a new beginning for General Motors. ... The board is confident that this New GM can operate successfully in the intensely competitive U.S. market and around the world."

Under Chapter 11 reorganization, a company can stay in operation under court protection while it sheds debts and unprofitable assets to emerge in a stronger financial position
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